Business

FNPF 18% contribution restored, civil service pay review

July 1, 2023 7:35 am

Fiji National Provident Fund

The government will restore the Fiji National Provident Fund workers contribution from 10 percent to 18 percent and undertake a review of the civil servants pay.

During his National Budget Address in Parliament, Finance Minister Professor Biman Prasad says the previous government had deprived workers of hundreds of millions of dollars in their FNPF contribution by reducing it from 18 percent to 10 percent.

Prasad says the 18 percent worker contribution rate will come into effect on January 1, 2024.

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He adds that as the largest employer in the country with over 35,000 employees, the government will undertake a holistic review of the salary structure for civil servants.

“We know that this has not been done in almost five years, and our hardworking civil servants, teachers, police, and medical professionals have not received a pay rise for some time.”

Prasad says the civil service remuneration and benefit review will be held over the next six to nine months, where the salary structure of the civil service will be readjusted to be commensurate with the work they do for the nation.

He also announced that the Coalition government will review the minimum wage rate in the next financial year.

Prasad says the government is committed to providing a just and fair living wage rate through a proper consultative process.

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